|
Example: Calculation of Amount Due at Lease Signing
or Delivery
| |
Capitalize and
pay over term |
Pay up front |
| Capitalized cost reduction |
$0
|
$0
|
| First monthly payment |
$330.00
|
$310.50
|
| Refundable security deposit |
$350.00
|
$350.00
|
| Title fees |
$75.00
|
$75.00
|
| Registration fees |
$60.00
|
$60.00
|
| Other items (for example, service contracts
and insurance) |
$0*
|
$800.00
|
| Amount due at lease signing or delivery
|
$815.00
|
$1,595.50
|
| Total of payments (assumes a $400 disposition
fee) |
$16,374.94
|
$16,238.95
|
*Amount is included in the gross capitalized cost.
Note: In this example, by paying $800 up front, the rent charge is reduced
$135.99 over the term of the lease; thus, the total of payments is reduced
$135.99. |